The investment world is undergoing a seismic shift—profits alone are no longer the ultimate measure of success. Impact investing is gaining momentum, proving that financial growth and meaningful change can go hand in hand. At the forefront of this movement is Dorothy Chan, Head of Philanthropy Services and Advisory, Asia Pacific, HSBC Global Private Banking, who has spent her career aligning capital with purpose.

In this exclusive interview, Dorothy shares bold insights on the evolving impact investing landscape, the key trends reshaping philanthropy, and what investors must know to drive both returns and real-world transformation.

1. With over two decades of experience, what emerging trends in philanthropy are you most excited about, and how do you see these reshaping the way family offices approach giving?

I am not a fan of using the term “emerging trends” within the philanthropy context as creating change requires time and patience. Philanthropy is personal. Our values, life experiences, and preferences determine how we give and what we give to. As such, there is no right or wrong way to give as long as you are clear on what you wish to achieve.

When we work with individuals and families, we often suggest they reflect and consider what works best within their own setting. There are a few schools of thought on giving—strategic philanthropy, trust-based philanthropy, venture philanthropy, big bets, effective altruism, and so forth. They share the common intention of enabling philanthropists to be effective high-impact givers so that every philanthropic dollar deployed leads to meaningful change. If there is a trend, it is philanthropists’ openness to learning and testing new ideas to become high-impact change-makers.

I am excited to see that more families are dedicating time and resources to delve into their motivations and preferences. Getting this part right sets a solid foundation for effective giving and enables them to organize their philanthropy to achieve the change they would like to see.

2. Family offices are increasingly looking to blend philanthropy with investment strategies. How can philanthropic initiatives align with financial goals while maintaining their focus on societal impact?

The alignment of investments and philanthropic giving reflects wealth owners “walking the talk” on their values. This “total portfolio approach” is a powerful way to sustain legacy. By deploying multiple resources and all levers of influence at their disposal, family offices improve the odds of future generations benefiting from the abundant natural resources and stable society we enjoy today.

The decision to align both financial and societal impact goals rests with values. An example is the Nathan Cummings Foundation, where the family stated, “We didn’t want to invest in the companies that cause harm in the communities we serve. Why give with one hand while taking away with the other?”

In practice, it may be helpful to visualize investment and philanthropy on a continuum. On one end sits philanthropy, where families place societal impact first with no expected financial return. On the other end sits investment, which may start with traditional investments focused on financial return only. In between are impact-related options: responsible or sustainable investing that integrates ESG risk to protect or enhance portfolio value; impact investing that places equal priority on financial and societal/environmental impact; and impact-first investing, where family offices concede some financial returns in exchange for greater societal/environmental impact.

Families wishing to align financial and societal goals should consider creating a statement defining the problem they aim to solve, their theory of change, and their intentions on capital allocation between investment and philanthropy. This statement serves as a roadmap, helping them stay focused and track progress.

3. Your career spans the private, public, and non-profit sectors. How can family offices build cross-sector collaborations to amplify the impact of their philanthropic endeavors?

There are multiple ways to participate in cross-sector partnerships. Family offices can initiate their own or join existing platforms formed by governments or multilateral institutions. For example:

• The World Economic Forum’s “Giving to Amplify Earth Action” initiative brings together philanthropic capital, development finance, government funds, and private investors to drive solutions for a net-zero future.

• Temasek Trust’s “Co-Axis” platform in Singapore is a digital marketplace showcasing for-profit and philanthropic impact opportunities across 40 countries.

• The Hong Kong Academy for Wealth Legacy’s “Impact Link” connects donors with impactful philanthropic projects.

For family offices looking to create their own partnerships, groundwork is key. They should start by understanding the issue, identifying key stakeholders, and developing a plan of action. Some guiding questions include:

• What problem are we trying to solve?

• What will the community look like if the problem is solved?

• Who can provide insights into the problem and potential solutions?

• What knowledge or resources do we need to realize our vision?

• What might motivate others to join us?

This landscape analysis is crucial for facilitating conversations with potential partners. Once there is alignment, establishing a framework—outlining responsibilities, decision-making processes, and progress-tracking mechanisms—ensures a smoother collaboration. It’s often beneficial to start small, test the approach, and refine it before scaling up.

4. Given your experience in sustainable development, how can family offices incorporate ESG principles into their philanthropy while addressing urgent global challenges?

Families are mindful of tackling urgent global challenges responsibly. When evaluating the impact of their giving, many take a holistic view, considering externalities in addition to the positive value created.

The good news is that the non-profit sector is very mindful of ESG practices. Social service organizations understand the importance of building trust with beneficiaries, funders, and regulators. Many are also subject to strict oversight due to the nature of their work, such as those working with children or on environmental conservation projects.

Larger non-profits typically have the resources to integrate ESG principles into their operations, but smaller organizations may lack the necessary expertise. Family offices can play a role in strengthening the capacity of their grantees and social service partners. This support could include:

• Initiating conversations to enhance understanding of ESG best practices

• Providing regular training and refreshers

• Covering the cost of resources needed for ESG implementation

These investments are worthwhile, as well-governed organizations are more likely to deliver meaningful impact.

5. Philanthropy is often seen as traditional and risk-averse. How do you encourage family offices to embrace innovation and adopt bold approaches to giving?

Philanthropists have introduced many innovations over the years, yet their contributions often go unrecognized. When working with clients, we explore their preferences, share community needs and success cases, and suggest potential actions to help them realize their vision.

Some funders may hesitate to absorb the risks associated with bold ideas. In such cases, intermediaries can help by identifying like-minded family offices willing to co-fund innovative projects, thereby reducing individual risk.

Storytelling is also a powerful tool for inspiring action. For example:

• Andrew Carnegie pioneered the concept of lending books, leading to the construction of over 2,500 public libraries worldwide.

• James Chen led a decade-long campaign for universal affordable eye care, ultimately contributing to the first UN resolution on “Vision for Everyone.”

• Khan Academy revolutionized online learning, making education accessible to millions, thanks to philanthropic support.

Taking bold approaches requires vision, collaboration, and adaptability. By learning from past successes and leveraging networks, family offices can play a transformative role in philanthropy.

Conclusion

Dorothy’s insights highlight a powerful shift in how wealth can be a force for good—where investment and philanthropy are not opposing forces but complementary tools for driving meaningful change. By aligning values with action, family offices can go beyond traditional giving to create lasting impact. As the world faces increasingly complex challenges, the role of intentional, strategic philanthropy has never been more critical. Whether through cross-sector collaborations, impact-driven investments, or bold philanthropic initiatives, the path forward is clear: true change comes from those willing to embrace new ideas, take risks, and commit to a long-term vision for a better world.

Her message is a call to action for investors and philanthropists alike—to not only fund change but to actively shape the future they wish to see.